Cash In On Sunshine: Selling Your Excess Solar Energy in Melbourne
Melbourne's embracing solar power like never before. If you've already joined the ranks of sun-powered homes, you're likely enjoying lower electricity bills. But did you know you could be earning even more by selling your excess solar energy back to the grid? This post will guide you through the process and help you maximise your returns.
Understanding the Basics: Self-Consumption, Imports, and Exports
Before diving into the specifics of selling energy, it's crucial to understand three key concepts:
- Self-Consumption: This refers to using the solar energy your panels generate directly in your home. This is the most cost-effective way to use solar power because you're avoiding purchasing electricity from the grid.
- Imports: This is the electricity you buy from the grid when your solar panels aren't producing enough power to meet your needs, such as at night or on cloudy days.
- Exports: This is the excess solar energy your system generates that you don't use yourself. This surplus is sent back to the electricity grid, and you get paid for it.
Essentially, the goal is to use as much of your solar energy as possible (maximise self-consumption), minimise your reliance on grid electricity (minimise imports), and sell any leftover energy (exports) for a profit.
The Feed-in Tariff: Getting Paid for Your Surplus
The amount you receive for exporting your excess solar energy is called the feed-in tariff (FiT). This is usually expressed in cents per kilowatt-hour (c/kWh). The FiT rate varies depending on your electricity retailer and the specific plan you're on.
Example:
Let's say your retail tariff (the price you pay for electricity from the grid) is 30c/kWh, and your feed-in tariff is 10c/kWh.
- If your solar system generates 1 kWh of electricity and you export it to the grid, you'll receive a credit of 10 cents.
- If you use that 1 kWh of electricity yourself, you avoid paying 30 cents to buy it from the grid, saving you 20 cents.
This illustrates why prioritising self-consumption is vital. Every unit of electricity you use from your solar system saves you the difference between the retail tariff and the feed-in tariff.
Maximising Your Solar Earnings: Load Shifting is Key
The timing of your electricity usage is crucial for optimising your solar earnings. Shifting your energy consumption from nighttime to daytime, when your solar panels are generating electricity, is known as load shifting. Here's how you can do it:
- Dishwashers and Washing Machines: Use the delay start function on your appliances to schedule them to run during the day when your solar panels are generating power.
- Heating and Cooling: If your home is well-insulated, consider pre-heating or pre-cooling your home during the day while the sun is shining. This can reduce your energy consumption during the evening peak.
- Electric Vehicle Charging: Charge your EV during the day to take advantage of your solar power.
Monitoring Your System: Know Your Inverter
Your solar inverter is the central hub of your system. It converts the direct current (DC) electricity from your panels into alternating current (AC) electricity that your home can use. It also provides valuable information about your system's performance.
Your inverter's display will show you:
- Power: The rate at which energy is being generated in watts (W) or kilowatts (kW).
- Energy Generated: The total amount of energy generated each day, measured in kilowatt-hours (kWh).
Many inverters also come with a web portal or smartphone app that allows you to track your energy production and consumption remotely. This data is invaluable for understanding your energy usage patterns and optimising your self-consumption.
Considering Battery Storage and Virtual Power Plants
While Solar Victoria is no longer offering interest-free loans for batteries, a solar battery can significantly increase self-consumption. They store excess solar energy generated during the day for use at night or during periods of low solar production.
Furthermore, if you have a solar battery, you might be eligible to participate in a Virtual Power Plant (VPP) program. VPPs aggregate the energy stored in multiple home batteries, creating a virtual power source that can be fed back into the grid during peak demand. This not only provides cleaner energy for the community but can also offer you additional financial benefits.
In Conclusion: Making the Most of Your Solar Investment
Selling your excess solar energy is a smart way to further reduce your electricity bills and contribute to a cleaner energy future. By understanding the feed-in tariff, implementing load-shifting strategies, and monitoring your system's performance, you can maximise your solar earnings and enjoy the full benefits of your investment. So, take control of your energy, harness the power of the sun, and watch your savings grow!
